Britain’s last military helicopter factory, Westland in Yeovil, Somerset, faces potential closure as Leonardo warns it could withdraw from the UK by the end of March unless a new government contract is secured.

If Leonardo exits, about 3,300 Yeovil jobs are at risk, with roughly 10,000 additional jobs in the UK’s supply chain and related facilities.

The UK also risks losing around 3,000 manufacturing roles at Leonardo Helicopters’ Yeovil plant if the MoD does not promptly award the new medium helicopter contract.

The MoD argues defence spending is rising to record levels as the UK prepares for increased operational commitments and works on a long-delayed defence investment plan.

Industry and unions urge securing the contract to preserve jobs and sovereign capability, with Unite calling on the government to deploy the defence budget to protect UK employment.

Union leaders, including Unite’s general secretary, stress the need for an immediate government decision on the order to safeguard UK jobs and sovereign capability.

A broader defence funding and policy review in the UK has been delayed until March, adding to uncertainty around the contract and Yeovil’s future.

The MoD has not yet finalized procurement decisions on the new medium helicopter programme; outcome will come as part of the defence investment plan.

The bid’s best-and-final-offer expires in March, and insiders say firms must be notified of a win by January to meet deadlines and avoid supply-chain price pressures.

Management delivered an ultimatum after the 2025 year-end contract decision failed to materialize, warning of potential loss of sovereign capability and production continuity.

The plant’s viability hinges on a sustained institutional partnership with the UK government, with leadership signaling a year-end decision as the last mile.

Leonardo’s leadership warns that delays or cancellation would trigger a reevaluation of its UK presence and investments, including electronics and cybersecurity divisions.